Redington (REDINGTON) Q4 24/25 earnings summary

Executive summary

• Achieved record Q4 and FY25 revenue and profit, with Q4 revenue at INR 26,510 crore and profit at INR 400 crore, and FY25 revenue at INR 99,562 crore and profit at INR 1,340 crore, excluding PayNet divestment gains.

• Highest ever quarterly PAT in Q4FY25, with EBITDA and PAT growth outpacing revenue growth year-over-year and sequentially.

• Completed PayNet divestment for INR 763.2 crore, with a post-tax gain of INR 536.7 crore before non-controlling interests, excluded from adjusted results.

• Board recommended a final dividend of INR 6.8 per share, about 40% of annual profits, subject to shareholder approval.

• Strong execution and operational performance across all business segments and geographies, with India and UAE leading growth.

Financial highlights

• Q4FY25 global revenue (incl. Arena) up 18% YoY to INR 26,510 crore; EBITDA up 24% to INR 667 crore; PAT up 23% to INR 400 crore.

• FY25 global revenue (incl. Arena) up 11% YoY to INR 99,562 crore; EBITDA up 5% to INR 2,257 crore; PAT up 10% to INR 1,340 crore.

• Consolidated net profit for FY25 was INR 1,820.62 crore, up from INR 1,238.61 crore in FY24.

• Working capital closed at 34 days, matching previous year’s Q4.

• Interest and factoring costs for FY25 were INR 531 crore, down from INR 706 crore last year.

Outlook and guidance

• Optimistic on growth trends in cloud, AI, and digital transformation, with margin guidance maintained at 2.3%-2.5% operating profit for the near term.

• Q1 expected to be seasonally soft, but execution focus remains strong.

• Tax rate expected to rise to 25-27% in FY26 due to global minimum tax changes.

• Focus on reinvesting profits to build customer access, efficient tech platforms, and adapt to evolving business models.